C3 FINANCIAL ACCOUNTING AND COST ACCOUNTING

S.No	Financial Accounting	Cost Accounting
1	Have specific purpose to serve and kept in manner to present correct figures to tax authorities. Classification and recording of transactions directed towards the preparation of final accounts.	With collection, classification, analysis and presentation of costs for the guidance of management for proper planning, organization, decision making, cost control and policy formulation and for efficient successful management
2.	Accounting treat costs in very broadly	Accounting treat costs in greater detail
	Eg transaction of material purchased	Necessity of material
3	Cannot give reliable and accurate answers needed by management	Indicates the reliable answers for the queries
4	Cost of manufacture of products information will only be totals and too the end of accounting	Cost of manufacturing of products may be analyzed in terms of expenditure, departments or functions
5	Cannot reveal inefficiencies in material handling	reveal inefficiencies in material handling
6.	Cannot have proper control over materials and stores, labour  and overheads	have proper control over materials and stores, labour  and overheads
7.	Do not provide detailed classification of expenditure and draw distinction betweens costs as fixed or variable, controllable or uncontrollable etc	Can provide detailed classification of expenditure and draw distinction betweens costs as fixed or variable, controllable or uncontrollable etc
8.	Stock is valued at cost at market price which ever is lower	Stock is valued only at cost